Staples disappoints; Some want Office chains to merge

NEW YORK - Staples Inc (GPS).(O) reduced its fiscal year forecasts and said that it would open stores that he had planned after its quarterly results missed Wall Street estimates, sending its shares down nearly 16% less.

The new renewed also speak of the need for consolidation in the sector of the supply of Office.

Small rival Office Depot Inc. (ODP).(N) and OfficeMax Inc. (OMX).(N) posted weak quarterly sales last month that shoppers and clients spend less on Office supplies in a course of slow recovery of the US economy.

Dismal numbers Staples Wednesday sent shares of the company at their lowest level in two years and dragged down stocks Office Depot and OfficeMax.

"We had held hope that their results would show their two smaller competitors market share gains, but the gain of the very small share comes in high price," said Credit Analyst Gary Balter Switzerland.

"Three players are at least too many in this sector," Balter added. "Consolidation will be a necessity."

Office supply sector may also be less relevant growth, with businesses and consumers opting more and buy some of these products from Amazon.com (AMZN) online retailer(O) or independent dealers.

Nomura analyst Aram Rubinson Staples downgraded earlier this month, despite his belief that the string is "managed by some of the best executives in the retail around."

"If we believe that Staples is a far better operator, we believe that the problems faced by the Office Depot and OfficeMax are not expressly cyclic or company-specific," Rubinson said at the time. "Rather, the Office sector fighting a secular battle of relevance."

On Wednesday, Staples Chief Executive Officer Ron said Sargent that the company would now open approximately 20 new stores to 10 to the Canada, and United States while closing approximately 10 of these markets. That the net addition of 20 new stores in North America is half of the previous outlook of 40.

Staples is also currently of "cropping significant feet square" in its current format of 18 000 square feet, said Sargent.

DIFFICULT TIME TO COME

The company, which sees very little improvement in the US economy this year, said that he sees the whole net revenues of $ 1.35 to $ 1.45 on the one hand, to the bottom of his prior notice from $ 1.50 to $ 1.60.

It is less optimistic about sales as well. It provides that the growth at a rate low percentage to a single digit, compared to its prior Outlook for an increase in the lower mid-single digit.

Some analysts have raised concerns that even recent improvements of the US economy was not going to follow in an area traditionally regarded as a barometer of economic health.

Net profit of Staples increased 198.2 million, or 28 cents per share, in the first quarter ended April 30 of $ 188,8 million, or 26 cents per share, a year earlier. Analysts expected 32 cents per share, according to Thomson Reuters I/B/E s.

Sales increased by 2% to 6.17 billion, missing for estimating average analysts 6.20 billion.

Shares of Staples fell by 15.9% to $16.53 on the Nasdaq. On the New York Stock Exchange, Office Depot fell 6.4%, and OfficeMax fell by 7.0%.

"back office" fraud in view of the increase after the tip recession

ORLANDO, Florida  - "back office" fraud is draining corporate treasures of billions of dollars per year, and the risk is growing businesses and employees of struggle following the recession, finance managers, and experts say.

The fraudulent schemes in the ministries of finance company include the creation of false sellers, billings for goods, non-existent checks written to dummy corporations and kickbacks from vendors.

"Most companies are weak in the area of the back office and vendor fraud and is a major threat for them", Michele Edwards, an expert in fraud, said Reuters this week in the margin of a corporate finance professionals Conference.

In General, it takes 18 months to detect fraud, said Edwards.

In an informal survey of managers of the 622 finance during the May 8-12 Conference Orlando, 72% reported having seen an increase in cases of fraud of back-office, Tom Bohn, President of the Institute of financial transactions, said Friday.

The Institute, which brings together several associations across corporate finance professionals in the world, was launched this week in the Conference of Orlando.

Bohn and Edwards, said some of the increase in reported loss could be the result of increased attention of companies and the detection of the, return of fraud on the Office over the past two years.

That focus has come in response to federal regulators U.S. taking a tougher line against companies that were not enough to prevent fraud which caused losses of the shareholder.

SQUEEZE ON PERSONAL FINANCE

But Edwards and Bohn said the recent recession has increased the risk of fraud.

Company cutbacks had led to some employees, becoming solely responsible for what had previously been two separate functions, and there had been a reduction in internal controls and balances and controls Agency.

The tightening of the recession on personal finances and family life of the employees is also a factor, said Edwards.

"They get a rise." They get a game that (retirement plan). Those are just additional pressures that have been in the past two years which may have their caused to do something unfortunate like fraud, many people - where they could not be in a normal environment - "says Edwards.

She said that the end of the recession will not solve the problem.

"You have these expectations of shareholders and CEO, hey, we are from the recession." It's back to business. It is to return to the mode of growth. That pressure is not really go far, "said Edwards.

Companies are beginning to employ safeguards such as software, analysis and fraud prevention specialists tools to detect problems. They begin to discover and to close the potential for fraud and build a corporate culture that discourages it.

"If focus you on the culture, you can reduce the risk from the first day," said Bohn. "The more money you can save to leave the company, the better your profitability will be.".